Tether, the entity behind the world's largest stablecoin by market value, has announced a first-quarter net profit of $1.04 billion, alongside a substantial increase in its excess reserves to $8.23 billion. The company did not disclose comparative figures for the previous year or the preceding quarter but mentioned achieving a net profit exceeding $10 billion for the entirety of 2025. As of March 31, the circulation of the dollar-pegged USDT remained steady, with total token-related liabilities amounting to approximately $183 billion, according to the firm's quarterly report.
The company's total assets stood at nearly $192 billion. The release of this report coincides with a global surge in demand for stablecoins, driven by their expanding utility beyond cryptocurrency trading, notably in international payment mechanisms. Recently, Visa expanded its stablecoin settlement pilot to include nine blockchains, adding to its existing support for several major blockchain platforms. The growth in excess reserves, up from $6.3 billion at the end of 2025, is attributed to the company's sustained profitability and a reserve base primarily composed of high-quality, short-duration liquid instruments.
USDT ranks as the third-largest cryptocurrency, following bitcoin and ether, with a market capitalization of just under $190 billion. The majority of Tether's reserves are invested in U.S.
government-backed instruments and short-term liquidity facilities, positioning the firm as the 17th-largest holder of U.S. Treasuries worldwide.
Over the past two years, Tether has become a leading buyer of U.S. Treasuries, surpassing several countries. Additionally, the company holds approximately $20 billion in physical gold and about $7 billion in bitcoin reserves.